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In this paper we propose a methodology based on an evolutionary multiobjective optimization algorithm for the problem of up-grading (expansion) the physical topology of transparent optical networks. The aim is to define the new topology layout and the specification of the new optical devices that should be deployed in an existing network in order to improve its performance, considering simultaneously the total installation cost (capital cost) and the total network blocking probability (performance criteria). To accomplish that, we propose a capital cost model for the network. We considered the following physical layer impairments: losses in optical devices, amplified spontaneous emission in optical amplifier and homodyne crosstalk in optical cross connect. The multiobjective optimization evolutionary algorithm used in the optimization process is the NSGA-II. Our proposed methodology can solve the expand physical topology design problem taking into account the physical layer impairments and the capital costs simultaneously. We also present a case study to show the effectiveness of our methodology.